Chrysler's CEO Says They Will Not Repeat Mistakes From The Cherokee Launch

Chrysler CEO Sergio Marchionne vowed this week that the company would not repeat the mistakes that caused the new 2014 Cherokee to be delayed.

"What we've learned is that we'll never repeat it. We're never going to take a plant down and be out of the market for over a year," Marchionne said on a call with analysts.

The Cherokee is the first Chrysler vehicle to use a new nine-speed automatic transmission. However, problems arose with how the engine, nine-speed automatic transmission and all-wheel-drive system interacted with each other. Engineers worked for months to create a software patch to smooth out the interaction. This is turn caused a number of Cherokees to sit at Jeep's Toledo factory, waiting for this update. It also caused the sale date to be pushed back from the summer to this month.

"We were naïve that it would be a seamless introduction," Marchionne said.

With the issue resolved, dealers are now getting their Cherokees. Also, the Toledo factory is hard at work, producing 1,000 Cherokees a day.

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Last week, we brought forth the rumor the Fiat Chrysler Automobiles canceled plans for the upcoming Jeep Grand Wagoneer. The issue dealt with the Grand Cherokee/Durango's unibody platform could not be stretched out to accommodate the size of the vehicle.
Many of us here at Cheers & Gears along with some other outlets smelled something fishy with rumor. Wouldn't FCA think to consider whether or not the Grand Cherokee/Durango's unibody platform actually work for a larger model?
Automotive News has done some investigating into this rumor and has learned from supplier sources that the Grand Wagoneer has been put on hold. No reason was given by the sources as to why, but Automotive News has a theory and it comes down to money.
Fiat Chrysler Automobiles doesn't have enough to work on this project. At the moment, the company is trying to relaunch the Alfa Romeo brand in the U.S., finish work on the redesigned Jeep Wrangler and Ram 1500, and launch a Jeep Wrangler pickup. There is also the retooling of FCA's Sterling Heights, MI and Toledo, OH plants to get them ready to build more SUVs and pickups.
FCA could build the Grand Wagoneer at their Jefferson North plant — home to the Grand Cherokee and Durango production. But the plant isn't setup to build a long-wheelbase model, which means more money has to be spent. Money that FCA doesn't have.
Like our story from last week, Automotive News floats the idea of the Grand Wagoneer possibly using the Ram 1500's platform
We'll end this piece with the last lines of Automotive News' story as it sums up the choice FCA has to make.
"If covering FCA for a decade has taught me anything, it is that the company has its own internal Occam’s razor: If there are two choices, and one is cheaper and easier, that’s the choice FCA will make.
Let’s see if that’s the case with the Jeep Grand Wagoneer."
Source: Automotive News (Subscription Required)

Last week, we brought forth the rumor the Fiat Chrysler Automobiles canceled plans for the upcoming Jeep Grand Wagoneer. The issue dealt with the Grand Cherokee/Durango's unibody platform could not be stretched out to accommodate the size of the vehicle.
Many of us here at Cheers & Gears along with some other outlets smelled something fishy with rumor. Wouldn't FCA think to consider whether or not the Grand Cherokee/Durango's unibody platform actually work for a larger model?
Automotive News has done some investigating into this rumor and has learned from supplier sources that the Grand Wagoneer has been put on hold. No reason was given by the sources as to why, but Automotive News has a theory and it comes down to money.
Fiat Chrysler Automobiles doesn't have enough to work on this project. At the moment, the company is trying to relaunch the Alfa Romeo brand in the U.S., finish work on the redesigned Jeep Wrangler and Ram 1500, and launch a Jeep Wrangler pickup. There is also the retooling of FCA's Sterling Heights, MI and Toledo, OH plants to get them ready to build more SUVs and pickups.
FCA could build the Grand Wagoneer at their Jefferson North plant — home to the Grand Cherokee and Durango production. But the plant isn't setup to build a long-wheelbase model, which means more money has to be spent. Money that FCA doesn't have.
Like our story from last week, Automotive News floats the idea of the Grand Wagoneer possibly using the Ram 1500's platform
We'll end this piece with the last lines of Automotive News' story as it sums up the choice FCA has to make.
"If covering FCA for a decade has taught me anything, it is that the company has its own internal Occam’s razor: If there are two choices, and one is cheaper and easier, that’s the choice FCA will make.
Let’s see if that’s the case with the Jeep Grand Wagoneer."
Source: Automotive News (Subscription Required)

FCA US Reports November 2016 U.S. Sales
Ram Truck brand sales up 12 percent compared with same month a year ago; Ram pickup truck sales up 8 percent
All-new 2017 Chrysler Pacifica minivan sales up 13 percent compared with previous month of October
Jeep® Renegade sales up 30 percent; all-new 2017 Jeep Compass makes its U.S. debut at the Los Angeles Auto Show
December 1, 2016 , Auburn Hills, Mich. - FCA US LLC today reported U.S. sales of 160,827 units, a 14 percent decrease compared with sales in November 2015 (187,731 units).
FCA US retail sales of 126,780 units were down 2 percent year over year in November, representing 79 percent of total sales for the month. Fleet sales of 34,047 units were down 42 percent year over year in November as FCA US continues to reduce its sales to the daily rental segment. Fleet sales represented 21 percent of total FCA US sales in the month.

Ram Truck brand sales were up 12 percent in November versus the same month in 2015. Ram ProMaster van sales increased 126 percent in November, while Ram pickup truck sales increased 8 percent. The Jeep® Renegade small SUV had a strong November with a 30 percent sales gain, while sales of the Fiat 500 were up 18 percent compared with the same month a year ago.

Sales of the all-new 2017 Chrysler Pacifica – launched earlier this year – were up 13 percent in November compared with sales in the previous month of October. November sales represented the minivan’s second best sales month this year.

Ram Truck brand sales are up 11 percent calendar year to date through November compared with the same 11-month period in 2015. Jeep brand sales are up 8 percent calendar year to date as well.

Ram Truck Brand
Ram Truck brand sales, which include the Ram pickup, Ram ProMaster and Ram ProMaster City, increased 12 percent in November versus the same month in 2015. With its 126 percent sales gain, the Ram ProMaster van turned in the largest year-over-year percentage increase of any FCA US vehicle in November. Sales of the Ram pickup truck increased 8 percent in November. The Ram 1500 earned Best Buy awards last month from Consumers Digest and Consumer Guide Automotive. Also last month, the Green Car Journal named the Ram ProMaster City its 2017 Commercial Green Car of the Year for the second consecutive year – the first time a vehicle has won one of the magazine’s titles consecutively. Ram Truck brand sales are up 11 percent calendar year to date compared with the same 11 months in 2015.
Jeep Brand
Jeep brand sales were down 12 percent compared with the same month a year ago. The Jeep Renegade turned in a strong 30 percent increase in November compared with the same month in 2015. The Renegade earned Best Buy awards last month from Consumers Digest and Consumer Guide Automotive in the subcompact SUV segment. In addition, the Jeep Grand Cherokee earned a Consumers Digest Best Buy for the seventh consecutive year in the mid-size SUV category. Jeep brand sales are up 8 percent calendar year to date compared with the first 11 months of 2015.

The all-new 2017 Jeep Compass made its U.S. debut last month at the Los Angeles Auto Show. The global compact SUV delivers unsurpassed 4x4 capability, world-class on-road driving dynamics, advanced fuel-efficient powertrains and premium styling. The Compass will be manufactured in Brazil, China, Mexico and India, for consumers in more than 100 countries around the world.

FIAT Brand
FIAT brand sales, which include the Fiat 500, Fiat 500L, Fiat 500X and Fiat 124 Spider, were down 15 percent in November. However, sales of the Fiat 500 were up 18 percent year-over-year in November. In its fifth month in the market, the all-new 124 Spider recorded sales of 350 units. The 124 Spider earned a 2017 Best Buy last month in the sporty performance car segment from the automotive editors at Consumer Guide Automotive, who noted that the 124 Spider “represents an impressive amount of fun for the money.” The 124 Spider also took home the award for Best-Looking New Car from readers of The Car Connection in November.
Dodge Brand
Dodge brand sales were down 21 percent in November compared with the same month in 2015. However, Dodge Charger sales increased 34 percent compared with the same month a year ago. Dodge Viper sales were up as well. The Dodge Durango earned a Best Buy last month from Consumer Guide Automotive in the large SUV category – for the fifth consecutive year. In addition, for the third time in three years, the Charger has earned the Residual Value Award in the full-size category from ALG, the industry benchmark for residual values and depreciation data. Also, the Charger and Durango were “most loved” in their respective segments for the third consecutive year making Strategic Vision’s “Most Loved Vehicles in America” list, while the Dodge Challenger earned a spot on the list in the specialty coupe category.

Plans for a flagship Jeep may have been trashed. Autoline Daily reported yesterday that Fiat Chrysler Automobiles have cancelled plans for the Grand Wagoneer that was due for the 2019 model. Citing information from industry planning company Auto Forecast Solutions, Autoline Daily says the company cannot stretch out the platform that underpins the Jeep Grand Cherokee and Dodge Durango for a model that would be in a higher segment.
Autoline Daily goes on to say that work may continue on a flagship model for Jeep, but use the platform that underpins the Ram 1500 pickup.
Rumors of the Grand Wagoneer have been floating around for a couple of years and it only recently confirmed by Jeep CEO Mike Manley. Last month, we got a possible preview as to what Grand Wagoneer's front end could look like.
Source: Autoline Daily (Video Below)